NPORT-EX 2 fp0054914_nportex.htm

RiverNorth Opportunities Fund, Inc.

Statement of Investments

April 30, 2020 (Unaudited)

 

Description  Shares   Value
(Note 2)		 
CLOSED-END FUNDS - COMMON SHARES (71.27%)          
Aberdeen Emerging Markets Equity Income Fund, Inc.   310,305   $1,737,708 
Aberdeen Total Dynamic Dividend Fund   463,322    3,340,552 
AllianzGI Artificial Intelligence & Technology Opportunities Fund   36,740    655,442 
AllianzGI NFJ Dividend Interest & Premium Strategy Fund   271,227    2,869,582 
Barings Corporate Investors   29,206    401,033 
Barings Participation Investors   15,118    171,589 
BlackRock California Municipal Income Trust   24,540    299,388 
BlackRock Debt Strategies Fund, Inc.   525,772    4,821,329 
BlackRock Muni New York Intermediate Duration Fund, Inc.   63,487    903,737 
BlackRock MuniHoldings California Quality Fund, Inc.   8,937    113,500 
BlackRock New York Municipal Bond Trust   81,156    1,168,646 
BlackRock New York Municipal Income Quality Trust   143,197    1,726,956 
BlackRock Resources & Commodities Strategy Trust   456,408    2,551,321 
BrandywineGLOBAL - Global Income Opportunities Fund, Inc.(a)   357,123    3,989,064 
Clough Global Equity Fund   190,722    1,848,096 
Clough Global Opportunities Fund(a)   300,858    2,382,795 
Cohen & Steers Quality Income Realty Fund, Inc.   233,998    2,339,980 
Delaware Enhanced Global Dividend & Income Fund   158,072    1,262,995 
DTF Tax-Free Income, Inc.   166,827    2,242,155 
Eaton Vance Floating-Rate Income Plus Fund   218,844    2,840,595 
Eaton Vance Limited Duration Income Fund(a)   243,225    2,646,288 
Eaton Vance Municipal Bond Fund   244,392    2,930,260 
Eaton Vance Senior Income Trust   322,575    1,603,198 
Eaton Vance Tax-Managed Buy-Write Strategy Fund   25,569    222,962 
First Trust Senior Floating Rate Income Fund II   34,687    361,439 
Highland Global Allocation Fund   207,256    1,050,788 
Highland Income Fund   300,841    2,232,240 
India Fund, Inc.   16,754    244,273 
Invesco Dynamic Credit Opportunities Fund   109,176    908,344 
Invesco High Income Trust II   120,789    1,307,819 
Invesco Senior Income Trust   380,575    1,263,509 
John Hancock Tax-Advantaged Global Shareholder Yield Fund   93,107    486,019 
Kayne Anderson Midstream/Energy Fund, Inc.   192,971    868,369 
Kayne Anderson MLP/Midstream Investment Co.   312,442    1,652,818 
Morgan Stanley Emerging Markets Domestic Debt Fund, Inc.   28,617    152,529 
Neuberger Berman High Yield Strategies Fund, Inc.   21,565    210,259 
Neuberger Berman New York Municipal Fund, Inc.   92,391    1,008,910 
NexPoint Credit Strategies Fund   142,230    1,385,320 
Nuveen Credit Strategies Income Fund   271,710    1,603,089 
Nuveen Dividend Advantage Municipal Income Fund   68,583    956,047 
Nuveen Georgia Quality Municipal Income Fund   127,994    1,471,931 
Nuveen Intermediate Duration Quality Municipal Term Fund   13,740    179,032 
Nuveen New York Municipal Value Fund 2   40,355    529,054 
Nuveen Ohio Quality Municipal Income Fund   25,298    357,714 
PGIM Global High Yield Fund, Inc.(a)   474,681    5,568,008 
PGIM High Yield Bond Fund, Inc.   128,648    1,586,230 
PIMCO Energy & Tactical Credit Opportunities Fund   315,975    2,486,723 
Pioneer Floating Rate Trust   163,207    1,367,675 
Putnam Municipal Opportunities Trust   16,267    189,185 
Royce Micro-Cap Trust, Inc.   233,042    1,554,390 
Source Capital, Inc.   70,467    2,255,733 
Special Opportunities Fund, Inc.   75,769    780,421 

 

 

 

Description          Shares   Value
(Note 2)		 
The Swiss Helvetia Fund, Inc.             127,223   $938,906 
Templeton Global Income Fund             321,422    1,738,893 
Voya Global Equity Dividend and Premium Opportunity Fund             294,817    1,465,240 
Voya Natural Resources Equity Income Fund             286,427    707,475 
Voya Prime Rate Trust(a)             1,273,755    5,044,070 
Wells Fargo Income Opportunities Fund             113,293    771,525 
Western Asset Global High Income Fund, Inc.             272,934    2,295,375 
                     
TOTAL CLOSED-END FUNDS - COMMON SHARES                    
(Cost $109,672,772)                  92,048,523 
                     
CLOSED-END FUNDS - PREFERRED SHARES (0.74%)
PennantPark Investment Corp.             30,979    647,461 
WhiteHorse Finance, Inc.             13,249    311,484 
                     
TOTAL CLOSED-END FUNDS - PREFERRED SHARES                    
(Cost $1,094,059)                  958,945 
                     
BUSINESS DEVELOPMENT COMPANIES - COMMON SHARES (5.04%)
Barings BDC, Inc.(a)             963,209    6,511,293 
                     
TOTAL BUSINESS DEVELOPMENT COMPANIES - COMMON SHARES            
(Cost $8,778,320)                  6,511,293 
                     
BUSINESS DEVELOPMENT COMPANY NOTES - PREFERRED SHARES (5.34%)
Capital Southwest Corp., 5.95%, 12/15/2022             15,668    363,028 
Monroe Capital Corp., 5.75%, 10/31/2023             31,867    688,008 
Oxford Square Capital Corp., 6.50%, 3/30/2024             117,106    2,559,937 
Portman Ridge Finance Corp., 6.13%, 9/30/2022             35,346    728,481 
Stellus Capital Investment Corp., 5.75%, 9/15/2022             18,081    387,865 
THL Credit, Inc., 6.75%, 12/30/2022             33,487    795,316 
THL Credit, Inc., 6.13%, 10/30/2023             45,456    1,077,644 
TriplePoint Venture Growth BDC Corp., 5.75%, 7/15/2022             12,985    295,798 
                     
TOTAL BUSINESS DEVELOPMENT COMPANY NOTES - PREFERRED SHARES            
(Cost $7,043,020)                  6,896,077 

 

         Maturity    Principal    Value 
Description   Rate    Date    Amount    (Note 2) 
CONVERTIBLE CORPORATE BONDS (3.62%)
Ares Capital Corp.   3.750%   02/01/22   $1,000,000   $961,500 
BlackRock Capital Investment Corp.   5.000%   06/15/22    1,582,335    1,236,199 
BlackRock TCP Capital Corp.   4.625%   03/01/22    699,500    655,136 
Goldman Sachs BDC, Inc.   4.500%   04/01/22    500,000    475,000 
New Mountain Finance Corp.   5.750%   08/15/23    1,000,000    851,118 
TPG Specialty Lending, Inc.   4.500%   08/01/22    500,000    495,625 
                     
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $4,691,457)                  4,674,578 
                     
CORPORATE BONDS (0.49%)
Business Development Corp. of America(b)   4.850%   12/15/24    725,000    638,552 
                     
TOTAL CORPORATE BONDS
(Cost $725,000)                  638,552 

 

 

 

Description  Shares   Value
(Note 2)		 
SPECIAL PURPOSE ACQUISITION COMPANIES - COMMON SHARES (15.48%)(c)          
8i Enterprises Acquisition Corp.   23,872   $242,540 
Act II Global Acquisition Corp.   13,142    132,340 
Agba Acquisition, Ltd.   30,883    327,360 
Alberton Acquisition Corp.   22,730    246,848 
Alussa Energy Acquisition Corp.   33,782    336,131 
Amplitude Healthcare Acquisition Corp.   47,778    481,602 
Andina Acquisition Corp. III   29,708    302,427 
Apex Technology Acquisition Corp.   6,941    70,590 
CC Neuberger Principal Holdings I   43,113    435,010 
Chardan Healthcare Acquisition 2 Corp.   29,794    296,748 
Churchill Capital Corp. II   56,978    615,362 
CIIG Merger Corp.   19,510    195,490 
Crescent Acquisition Corp.   39,846    416,391 
dMY Technology Group, Inc.   62,164    629,100 
East Stone Acquisition Corp.   41,399    408,608 
Far Point Acquisition Corp., Class A   5,103    52,000 
FinTech Acquisition Corp. III   35,478    370,745 
Flying Eagle Acquisition Corp.   29,396    305,424 
Galileo Acquisition Corp.   9,373    98,745 
GigCapital2, Inc.   23,193    238,192 
Greenrose Acquisition Corp.   74,128    726,825 
Greenvision Acquisition Corp.   65,740    691,256 
GX Acquisition Corp.   21,598    220,300 
Haymaker Acquisition Corp. II   15,939    164,411 
Healthcare Merger Corp.   9,755    99,452 
Hennessy Capital Acquisition Corp. IV   44,040    465,283 
Insurance Acquisition Corp.   6,376    68,733 
InterPrivate Acquisition Corp.   72,070    727,907 
Juniper Industrial Holdings, Inc.   1,301    13,238 
Landcadia Holdings II, Inc.   37,799    385,928 
LF Capital Acquisition Corp., Class A   33,437    348,079 
LifeSci Acquisition Corp.   24,497    245,215 
LIV Capital Acquisition Corp.   46,360    470,554 
Longevity Acquisition Corp.   24,043    254,014 
Megalith Financial Acquisition Corp.   35,972    371,950 
Merida Merger Corp. I   61,365    594,013 
Monocle Acquisition Corp.   7,363    75,029 
Netfin Acquisition Corp.   25,065    255,914 
New Providence Acquisition Corp.   16,868    172,897 
Newborn Acquisition Corp.   26,810    265,955 
Orisun Acquisition Corp.   36,130    368,526 
Osprey Technology Acquisition Corp.   31,260    314,945 
Pivotal Investment Corp. II   30,504    308,395 
Proficient Alpha Acquisition Corp.   34,883    353,016 
PropTech Acquisition Corp.   24,696    248,812 
Pure Acquisition Corp.   42,170    441,942 
Replay Acquisition Corp.   21,524    217,500 
SC Health Corp.   5,789    60,640 
Schultze Special Purpose Acquisition Corp.   30,224    307,680 
Silver Spike Acquisition Corp.   25,306    255,591 
South Mountain Merger Corp.   30,930    326,002 
Stable Road Acquisition Corp.   13,092    129,938 
Tenzing Acquisition Corp.   29,977    318,056 
Thunder Bridge Acquisition II, Ltd.   16,262    167,336 
Tottenham Acquisition I, Ltd.   24,729    263,364 
Trine Acquisition Corp.   30,246    318,188 
Tuscan Holdings Corp.   43,548    455,294 

 

 

 

Description  Shares   Value
(Note 2)		 
Tuscan Holdings Corp. II   92,638   $915,263 
Union Acquisition Corp. II   5,982    59,700 
VectoIQ Acquisition Corp.   47,906    634,755 
Wealthbridge Acquisition, Ltd.   22,108    220,748 
Yunhong International   49,213    487,209 
           
TOTAL SPECIAL PURPOSE ACQUISITION COMPANIES - COMMON SHARES          
(Cost $19,320,438)        19,991,506 
           
RIGHTS (0.09%)(c)          
8i Enterprises Acquisition Corp., Strike Price $11.50, Expires 12/31/2049   23,872    6,338 
Andina Acquisition Corp. III, Strike Price $11.50, Expires 12/31/2049   29,708    3,862 
Atlas Technical Consultants, Inc., Strike Price $11.50, Expires 11/26/2025   20,683    10,342 
Big Rock Partners Acquisition Corp., Strike Price $11.50, Expires 12/31/2049   35,482    4,081 
Golub Capital BDC, Inc., Strike Price $9.17, Expires 05/08/2020   120,235    77,371 
HL Acquisitions Corp., Strike Price $11.50, Expires 07/19/2023   30,748    3,997 
KBL Merger Corp. IV, Strike Price $11.50, Expires 07/01/2023   20,375    1,326 
Longevity Acquisition Corp., Strike Price $11.50, Expires 12/31/2049   24,043    3,005 
Tottenham Acquisition I, Ltd., Strike Price $11.50, Expires 12/31/2049   24,729    3,044 
Wealthbridge Acquisition, Ltd., Strike Price $11.50, Expires 03/01/2024   22,108    8,401 
           
TOTAL RIGHTS          
(Cost $149,010)        121,767 
           
WARRANTS (0.31%)(c)          
8i Enterprises Acquisition Corp., Strike Price $11.50, Expires 10/01/2025   23,872    3,963 
Act II Global Acquisition Corp., Strike Price $11.50, Expires 04/30/2024   6,571    3,959 
Alta Equipment Group, Inc., Strike Price $11.50, Expires 04/08/2024   10,909    8,727 
American Virtual Cloud Technologies, Inc., Strike Price $11.50, Expires 08/08/2022   19,431    874 
Andina Acquisition Corp. III, Strike Price $11.50, Expires 03/06/2024   29,708    1,782 
Betterware de Mexico SAPI de CV, Strike Price $11.50, Expires 03/13/2025   48,372    10,884 
Big Rock Partners Acquisition Corp., Strike Price $11.50, Expires 12/01/2022   17,741    899 
Brooge Energy, Ltd., Strike Price $11.50, Expires 07/14/2023   41,758    27,143 
Far Point Acquisition Corp., Strike Price $11.50, Expires 06/03/2025   1,701    774 
Graf Industrial Corp., Strike Price $11.50, Expires 12/31/2025   47,967    18,707 
Grid Dynamics Holdings, Inc., Strike Price $11.50, Expires 09/30/2023   8,053    13,006 
HL Acquisitions Corp., Strike Price $11.50, Expires 07/19/2023   30,748    1,922 
Immunovant, Inc., Strike Price $11.50, Expires 04/01/2024   13,788    48,947 
KBL Merger Corp. IV, Strike Price $11.50, Expires 07/01/2023   14,899    849 
KLDiscovery, Inc., Strike Price $11.50, Expires 12/01/2025   9,896    1,979 
Legacy Acquisition Corp., Strike Price $11.50, Expires 12/01/2022   29,594    10,358 

 

 

 

Description  Shares   Value
(Note 2)		 
Leisure Acquisition Corp., Strike Price $11.50, Expires 12/28/2022   28,414   $4,262 
LF Capital Acquisition Corp., Strike Price $11.50, Expires 06/28/2023   33,437    9,362 
Longevity Acquisition Corp., Strike Price $11.50, Expires 07/31/2025   24,043    1,683 
Megalith Financial Acquisition Corp., Strike Price $11.50, Expires 09/21/2023   35,972    6,878 
Merida Merger Corp. I, Strike Price $11.50, Expires 11/07/2026   30,682    11,659 
Meten EdtechX Education Group, Ltd., Strike Price $11.50, Expires 03/16/2025   16,106    6,120 
Monocle Acquisition Corp., Strike Price $11.50, Expires 06/12/2024   7,363    1,473 
Schultze Special Purpose Acquisition Corp., Strike Price $11.50, Expires 12/31/2023   30,224    4,534 
Tenzing Acquisition Corp., Strike Price $11.50, Expires 08/23/2025   29,977    2,398 
Tottenham Acquisition I, Ltd., Strike Price $11.50, Expires 06/06/2025   24,729    764 
Trident Acquisitions Corp., Strike Price $11.50, Expires 06/14/2021   50,476    2,271 
VectoIQ Acquisition Corp., Strike Price $11.50, Expires 06/12/2023   47,906    197,373 
Wealthbridge Acquisition, Ltd., Strike Price $11.50, Expires 02/05/2024   22,108    1,769 
           
TOTAL WARRANTS          
(Cost $288,409)        405,319 

 

   7-Day       Value 
Description  Yield   Shares   (Note 2) 
SHORT-TERM INVESTMENTS (6.66%)               
State Street Institutional Treasury Money Market Fund   0.286%   8,595,682    8,595,682 
                
TOTAL SHORT-TERM INVESTMENTS               
(Cost $8,595,682)             8,595,682 
                
TOTAL INVESTMENTS (109.04%)               
(Cost $160,358,167)            $140,842,242 
                
Liabilities in Excess of Other Assets (-9.04%)(d)             (11,690,517)
NET ASSETS (100.00%)            $129,151,725 

 

SCHEDULE OF SECURITIES SOLD SHORT(c)
Description  Shares   Value
(Note 2)		 
EXCHANGE TRADED FUNDS - COMMON SHARES (-7.05%)          
iShares® iBoxx $ High Yield Corporate Bond Fund   (16,644)  $(1,338,677)
SPDR Bloomberg Barclays High Yield Bond ETF   (50,000)   (4,951,500)
SPDR Bloomberg Barclays Short Term High Yield Bond ETF   (114,385)   (2,811,583)
           
TOTAL EXCHANGE TRADED FUNDS - COMMON SHARES        (9,101,760)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $9,809,300)       $(9,101,760)

 

 

 

(a)All or a portion of the security is pledged as collateral for securities sold short. As of April 30, 2020, the aggregate market value of those securities was $7,698,687 representing 5.96% of net assets.
(b)Restricted security (see Note 3)
(c)Non-income producing security.
(d)Includes cash, in the amount of $10,329,267 which is being held as collateral for securities sold short.

 

See Notes to Quarterly Statement of Investments.

 

 

 

 

RiverNorth Opportunities Fund, Inc.

Notes to Quarterly Statement of Investments

April 30, 2020 (Unaudited)

 

1. ORGANIZATION

 

RiverNorth Opportunities Fund, Inc. (the “Fund”) is a Maryland corporation registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). Effective July 18, 2018, the Fund’s Board of Directors (the “Board”) approved changing the fiscal year-end of the Fund from October 31 to July 31.

 

The Fund’s investment objective is total return consisting of capital appreciation and current income. The Fund seeks to achieve its investment objective by pursuing a tactical asset allocation strategy and opportunistically investing under normal circumstances in closed-end funds and exchange-traded funds (“ETFs” and collectively, “Underlying Funds”). Underlying Funds also may include business development companies (“BDCs”) and special purpose acquisition companies (“SPACs”). All Underlying Funds are registered under the Securities Act of 1933, as amended (the “Securities Act”). The Fund incurs higher and additional expenses when it invests in Underlying Funds. There is also the risk that the Fund may suffer losses due to the investment practices or operations of the Underlying Funds. To the extent that the Fund invests in one or more Underlying Funds that concentrate in a particular industry, the Fund would be vulnerable to factors affecting that industry and the concentrating Underlying Funds’ performance, and that of the Fund, may be more volatile than Underlying Funds that do not concentrate. In addition, one Underlying Fund may purchase a security that another Underlying Fund is selling.

 

Under normal circumstances, the Fund intends to maintain long positions in Underlying Funds, but may engage in short sales for investment purposes. When the Fund engages in a short sale, it sells a security it does not own and, to complete the sale, borrows the same security from a broker or other institution. The Fund may benefit from a short position when the shorted security decreases in value.

 

2. SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates: The Statement of Investments is prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts and disclosures in the Statement of Investments during the period reported. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the Statement of Investments may differ from the value the Fund ultimately realizes upon sale of the securities. The Fund is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board Accounting Standards Codification Topic 946. The Statement of Investments has been prepared as of the close of the New York Stock Exchange (“NYSE”) on April 30, 2020.

 

Portfolio Valuation: The net asset value per common share of the Fund is determined daily, on each day that the NYSE is open for trading, as of the close of regular trading on the NYSE (normally 4:00 p.m. New York time). The Fund’s net asset value per common share is calculated by dividing the value of the Fund’s total assets, less its liabilities by the number of shares outstanding.

 

The Board has established the following procedures for valuation of the Fund’s assets under normal market conditions. Marketable securities listed on foreign or U.S. securities exchanges generally are valued at closing sale prices or, if there were no sales, at the mean between the closing bid and ask prices on the exchange where such securities are primarily traded. If the independent primary or secondary pricing service is unable to provide a price for a security, if the price provided by the independent primary or secondary pricing service is deemed unreliable, or if events occurring after the close of the market for a security but before the time as of which the Fund values its common shares would materially affect net asset value, such security will be valued at its fair value as determined in good faith under procedures approved by the Board.

 

When applicable, fair value of an investment is determined by the Fund’s Fair Valuation Committee as a designee of the Board. In fair valuing the Fund’s investments, consideration is given to several factors, which may include, among others, the following: the fundamental business data relating to the issuer, borrower, or counterparty; an evaluation of the forces which influence the market in which the investments are purchased and sold; the type, size and cost of the investment; the information as to any transactions in or offers for the investment; the price and extent of public trading in similar securities (or equity securities) of the issuer, or comparable companies; the coupon payments, yield data/cash flow data; the quality, value and saleability of collateral, if any, securing the investment; the business prospects of the issuer, borrower, or counterparty, as applicable, including any ability to obtain money or resources from a parent or affiliate and an assessment of the issuer’s, borrower’s, or counterparty’s management; the prospects for the industry of the issuer, borrower, or counterparty, as applicable, and multiples (of earnings and/or cash flow) being paid for similar businesses in that industry; one or more independent broker quotes for the sale price of the portfolio security; and other relevant factors.

 

Securities Transactions and Investment Income: Investment security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend date. Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the cost basis method for both financial reporting and tax purposes.

 

 

 

Fair Value Measurements: The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Various inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.

 

These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 – Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date;
   
Level 2 – Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
   
Level 3 – Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

 

The following is a summary of the inputs used to value the Fund’s investments as of April 30, 2020:

 

Investments in Securities at Value  Level 1 -
Quoted Prices		   Level 2 -
Other Significant Observable Inputs		   Level 3 -
Significant Unobservable Inputs		   Total 
Closed-End Funds - Common Shares  $92,048,523   $–   $–   $92,048,523 
Closed-End Funds - Preferred Shares   958,945    –    –    958,945 
Business Development Companies - Common Shares   6,511,293    –    –    6,511,293 
Business Development Company Notes - Preferred Shares   6,896,077    –    –    6,896,077 
Convertible Corporate Bonds   –    4,674,578    –    4,674,578 
Corporate Bonds   –    638,552    –    638,552 
Special Purpose Acquisition Companies - Common Shares   19,991,506    –    –    19,991,506 
Rights   121,767    –    –    121,767 
Warrants   405,319    –    –    405,319 
Short-Term Investments   8,595,682    –    –    8,595,682 
Total  $135,529,112   $5,313,130   $–   $140,842,242 
Other Financial Instruments                    
Liabilities:
Securities Sold Short
Exchange Traded Funds - Common Shares  $(9,101,760)  $–   $–   $(9,101,760)
Total  $(9,101,760)  $–   $–   $(9,101,760)

 

The Fund did not have any securities that used significant unobservable inputs (Level 3) in determining fair value as of April 30, 2020. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable.

 

Short Sale Risks: The Fund and the Underlying Funds may engage in short sales. A short sale is a transaction in which a fund sells a security it does not own in anticipation that the market price of that security will decline. To establish a short position, a fund must first borrow the security from a broker or other institution. The fund may not always be able to borrow a security at a particular time or at an acceptable price. Accordingly, there is a risk that a fund may be unable to implement its investment strategy due to the lack of available securities or for other reasons. After selling a borrowed security, a fund is obligated to “cover” the short sale by purchasing and returning the security to the lender at a later date. The Fund and the Underlying Funds cannot guarantee that the security will be available at an acceptable price. Positions in shorted securities are speculative and more risky than long positions (purchases) in securities because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs, whereas there is no maximum attainable price of the shorted security. Therefore, in theory, securities sold short have unlimited risk. Short selling will also result in higher transaction costs (such as interest and dividends), and may result in higher taxes, which reduce a fund’s return.

 

 

 

Special Purpose Acquisition Company Risk: The Fund may invest in special purpose acquisition companies (“SPACs”). SPACs are collective investment structures that pool funds in order to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC generally invests its assets (less an amount to cover expenses) in U.S. Government securities, money market fund securities and cash. SPACs and similar entities may be blank check companies with no operating history or ongoing business other than to seek a potential acquisition. Certain SPACs may seek acquisitions only in limited industries or regions. If an acquisition that meets the requirements for the SPAC is not completed within a predetermined period of time, the invested funds are returned to the entity’s shareholders. Investments in SPACs may be illiquid and/or be subject to restrictions on resale.

 

Private Debt Risk: The Fund may invest in notes issued by private funds (“private debt”). Private debt often may be illiquid and is typically not listed on an exchange and traded less actively than similar securities issued by public funds. For certain private debt, trading may only be possible through the assistance of the broker who originally brought the security to the market and has a relationship with the issuer. Due to the limited trading market, independent pricing services may be unable to provide a price for private debt, and as such the fair value of the securities may be determined in good faith under procedures approved by the Board, which typically will include the use of one or more independent broker quotes.

 

Rights and Warrants Risks: Warrants are securities giving the holder the right, but not the obligation, to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a specified period or perpetually. Warrants do not carry with them the right to dividends or voting rights with respect to the securities that they entitle their holder to purchase and they do not represent any rights in the assets of the issuer. As a result, warrants may be considered to have more speculative characteristics than certain other types of investments. In addition, the value of a warrant does not necessarily change with the value of the underlying securities and a warrant ceases to have value if it is not exercised prior to its expiration date.

 

Rights are usually granted to existing shareholders of a corporation to subscribe to shares of a new issue of common stock before it is issued to the public. The right entitles its holder to buy common stock at a specified price. Rights have similar features to warrants, except that the life of a right is typically much shorter, usually a few weeks.

 

During the period ended April 30, 2020, the Fund invested in rights and warrants, which are disclosed in the Statement of Investments.

 

Market and Geopolitical Risk: The value of your investment in the Fund is based on the market prices of the securities the Fund holds. These prices change daily due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. These price movements, sometimes called volatility, may be greater or less depending on the types of securities the Fund owns and the markets in which the securities trade. The increasing interconnectivity between global economies and financial markets increases the likelihood that events or conditions in one region or financial market may adversely impact issuers in a different country, region or financial market. Securities in the Fund’s portfolio may underperform due to inflation (or expectations for inflation), interest rates, global demand for particular products or resources, natural disasters, pandemics, epidemics, terrorism, regulatory events and governmental or quasi-governmental actions. The occurrence of global events similar to those in recent years, such as terrorist attacks around the world, natural disasters, social and political discord or debt crises and downgrades, among others, may result in market volatility and may have long term effects on both the U.S. and global financial markets. It is difficult to predict when similar events affecting the U.S. or global financial markets may occur, the effects that such events may have and the duration of those effects. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund’s portfolio. There is a risk that you may lose money by investing in the Fund.

 

3. RESTRICTED SECURITIES

 

As of April 30, 2020, investments in securities included a security that is considered restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, and may have contractual restrictions on resale.

 

Description  Acquisition Date  Cost   Value   Value as a Percentage of Net Assets 
Business Development Corp. of America  12/3/2019  $725,000   $638,552    0.49%